SPDR Portfolio Europe ETF

SPEU

Market cap $705M

European stocks are expected to open lower on Tuesday, reversing largely positive sentiment at the start of the week.

European stocks are expected to open mostly higher Monday as markets keep a close eye on a new trade dispute between the U.S. and China.

European stocks are expected to hover around the flatline at the open on Wednesday as markets lack direction during a difficult week.

European stocks are expected to open mixed on Tuesday with all eyes on France after the resignation of Prime Minister Sebastien Lecornu.

The SPDR Portfolio Europe ETF presents a low-cost way to gain exposure to a diversified stock portfolio focused on Western Europe. I believe recent outperformance relative to the SPY has been driven by a mix of lower valuations and a weak U.S. dollar. Looking ahead, SPEU holdings remain attractively valued, with long-term returns potentially reaching 7.8% as long as GDP grows largely in line with the potential growth rate.

Economists polled by Reuters had expected the rate to remain unchanged from July, at 2%.

French bond yields have risen significantly against German bunds and are likely to stay elevated or potentially move higher. The European Central Bank still appears to be a reliable backstop against excessive bond turmoil.

European Central Bank Governing Council Member Joachim Nagel says "the bar is high" to issue another interest rate cut. Speaking to Bloomberg TV's Lisa Abramowicz and Tom Keene, the Bundesbank president said the euro zone is in a “kind of equilibrium,” with inflation and interest rates both at 2%.

The EU's overall trade surplus shrank to 1.8 billion euros in June, down from 12.7 billion euros a month earlier.

The new EU-US trade deal sets a 15% baseline tariff on most goods, averting a trade war but ending near-zero tariff norms. US markets highlight promised EU investments and energy purchases, while EU leaders express disappointment, seeing the deal as damage control.